Insights from the American Customer Satisfaction Index

Month: June 2017

It has been four years since Apple updated a smaller, pocket-sized phone and consumers are over-the-top with the new iPhone SE. Among smartphone brands, the lower-priced, no-frills iPhone SE scores a sky-high 87 on a scale of 0 to 100—the best rating among an array of primarily Apple and Samsung models in a recent study from the American Customer Satisfaction Index (ACSI).

The 4-inch SE beats out phones that are larger and designed with premium in mind. In second place, big-screen models Galaxy S6 edge+ and iPhone 7 Plus tie at 86, followed by three more Galaxy phones (scoring 84 to 85). Further down, the 5.7-inch Galaxy Note 5 comes in at 82.

Overall, Apple and Samsung dominate the category, and other manufacturers occupy the low end. Motorola’s Moto G and the larger LG G4, with its 5.5-inch screen, trail behind with scores of 75 and 73, respectively. The lowest-rated model, however, belongs to Samsung—the Galaxy Core Prime (70).

Surprise: The airline industry overall is improving its customer experience, according to surveys of thousands of passengers flying over the past year conducted by the American Customer Satisfaction Index (ACSI). While recent high-profile incidents peppered April headlines—from United’s passenger debacle to Delta’s spring break computer outage—consumers evaluating their experiences between April 2016 and March 2017 see year-over-year improvement as industry satisfaction bumps up 4.2% to an ACSI score of 75 (scale of 0 to 100).

Industry leaders JetBlue (82), Southwest (80), and Alaska Airlines (78) turn in scores that compare well with top-scoring companies in other industries. Other carriers—including legacy airlines—fall anywhere from middling to below-average for customer satisfaction. But passengers that are the most dissatisfied are those who opt for low price above all else. In a year that brings nearly across-the-board escalation in passenger satisfaction, the ultra-low-cost operators Spirit and Frontier lose ground (dropping 2% and 5%, respectively).

With major airlines like Delta and American starting to compete more aggressively on price, low ticket prices are not enough of a trade-off for low service quality. Across three years of ACSI measurement, Spirit consistently ranks last for passenger satisfaction, although the airline did improve last year (up from 54 in 2015 to 62). In 2017, however, the airline does not build upon that gain. Thus far, Spirit’s efforts over the past year to better customer relations and improve on-time arrivals are not paying off as passenger satisfaction instead recedes to 61.

JetBlue proves that airlines can deliver a satisfying experience to passengers in an industry that, on average, still shows ample room for improvement. The discount carrier’s low-cost business model and cabin upgrades appear to be the right combination for its passengers, according to data from the American Customer Satisfaction Index.

In 2017, JetBlue leads the industry with an ACSI score of 82 on a scale of 0 to 100—a satisfaction level deemed excellent by ACSI standards. JetBlue has maintained an ACSI score in the low 80s in all but one year over the past five. A close second goes to low-cost operator Southwest—an airline that also occupies the industry’s upper tier with a five-year average of 79.

While both JetBlue and Southwest sail above the average in 2017, most of the major legacy carriers take the industry’s middle ground, well ahead of the ultra-low-cost fliers—Spirit (61) and Frontier (63). United, however, ranks third from the bottom with a score of 70 despite a net gain of 10 points over the past two years.

United’s forcible removal of a passenger—captured on social media—triggered a stock market drop for the airline, but is not reflected in the 2017 ACSI results as data collection had ended prior to the media storm. The impact of such a high-profile incident on future satisfaction is unknown, but passengers tend to base their satisfaction levels on their own experiences. For many United customers, that experience has been less than stellar as the airline’s satisfaction has been lagging for some time. In sharp contrast this year, both American and Delta score 76—a record-high for American and the best score in over two decades for Delta. Looking at five-year trends for legacy airlines, United is still playing catch-up among the majors.

Airlines overall continue to rank in the bottom third among 43 ACSI industries. The ACSI Travel Report 2017—which includes airlines, hotels, and internet travel services—is based on thousands of customer surveys completed over 12 months.